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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInFake WeWork Rescuer Was an Hour Late – Bloomberg
Should you email the SEC if you are planning to put out a fake press release about a fake tender offer? I guess it doesn’t matter much either way. They can see the press release. I suppose you can argue “no, this was a real offer, as you can see because I emailed the SEC […]
SEC Disclosures of Artificial Intelligence Technologies – Governance & Securities Watch
The meteoric rise in generative artificial intelligence has dramatically altered the corporate landscape as companies increasingly invest in or incorporate artificial intelligence, including machine learning technologies (together referred to herein as “AI”), into their businesses. The increasing adoption of AI presents tremendous opportunities to harness data on a vast scale, but it also presents numerous […]
Conservative Supreme Court justices seem open to an attack on the Securities and Exchange Commission
In the Jarkesy case, the Democratic administration is relying on a 50-year-old decision in which the court ruled that in-house proceedings did not violate the Constitution’s right to a jury trial in civil lawsuits. But Chief Justice John Roberts, signaling his concerns with the power of federal regulators, noted that “the impact of governmental agencies […]
‘A Politician Masquerading as a Regulator’ – 3 Takeaways From Gary Gensler’s Fortune Profile
It’s strange to think now how crypto received Gary Gensler as he became Securities and Exchange Commission chair in 2021. At the time, he was a breath of fresh air for an industry that badly needed change. His SEC predecessor, Jay Clayton, had seemed largely disinterested in digital assets, whereas Gensler had taught courses on […]
SEC’s Use of In-House Judges Cast in Doubt by Supreme Court
The US Supreme Court’s conservative majority cast doubt on the Securities and Exchange Commission’s use of in-house judges, hearing arguments in a case that could strip the agency of a key enforcement tool. In a session that lasted more than two hours Wednesday, the justices suggested that people accused of fraud by the SEC have […]
SEC Charges Phoenix-Area Real Estate Fund Adviser Jonathan Larmore with $35 Million Fraud
The Securities and Exchange Commission today announced fraud charges against Phoenix-based real estate investment company ArciTerra Companies LLC and its CEO, Jonathan M. Larmore, for engaging in a multi-year scheme to misappropriate millions of dollars of investor funds from investment vehicles that ArciTerra managed. The SEC also charged several entities controlled by Larmore for their […]
The SEC May Have Gone Too Far. The Supreme Court Shouldn’t. – Bloomberg
It’s worth pondering the practical implications of such a ruling. Would the SEC be able to protect investors and regulate securities markets if it had to bring its cases to district court? Undoubtedly. But throwing out the intelligible-principle test would cast doubt on existing regulations — as many as hundreds of thousands across the government […]
The SEC Might Lose Its Courts – Bloomberg
But if Jarkesy wins a total victory on the nondelegation argument, that’s different. That could mean that all of the SEC’s rulemaking (and every other regulatory agency’s rulemaking) is suspect, that every policy decision that the SEC makes is unconstitutional. Much of US securities law would need to be thrown out, or perhaps rewritten by […]
SEC, US Audit Board to Collaborate on More Audit Investigations
The SEC and US audit board plan to combine their enforcement resources to target serious audit violations and auditors with a history of repeated missteps, officials with the two regulators said Tuesday. “There are firms that just continually come up in our space,” Ryan Wolfe, chief accountant for the Division of Enforcement at the Securities […]